Audit 354193

Assistance Listing title and number (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155 (Project identification number 044-11119, 2006) Auditor non-compliance code: J – Unauthorized Management Fees Finding resolution status: Completed Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: Not applicable Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Statement of condition #2024-001 (Assistance Listing No. 14.155): There was not a management entity profile able to be provided in effect for the period January 1, 2024 through June 30, 2024. Criteria: The Corporation is required by HUD Management Agent Handbook 4381.5 2.9b to have a management entity profile (form HUD-9832) at all times. Effect or potential effect: The Property is not in compliance with the Regulatory Agreement. Cause: The former board of directors and management agent were unable to provide an executed management entity profile. Recommendation: HUD should approve a new board of directors and management agent. Completion date: July 1, 2024 Management's response: Agree. The new board of directors and new management agent took over the Property effective July 1, 2024 and have executed a management entity profile with HUD.

Assistance Listing title and number (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155 (Project identification number 044-11119, 2006) Auditor non-compliance code: J – Unauthorized Management Fees Finding resolution status: Completed Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: Not applicable Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Statement of condition #2024-001 (Assistance Listing No. 14.155): There was not a management entity profile able to be provided in effect for the period January 1, 2024 through June 30, 2024. Criteria: The Corporation is required by HUD Management Agent Handbook 4381.5 2.9b to have a management entity profile (form HUD-9832) at all times. Effect or potential effect: The Property is not in compliance with the Regulatory Agreement. Cause: The former board of directors and management agent were unable to provide an executed management entity profile. Recommendation: HUD should approve a new board of directors and management agent. Completion date: July 1, 2024 Management's response: Agree. The new board of directors and new management agent took over the Property effective July 1, 2024 and have executed a management entity profile with HUD.